Organizational change is defined as “the alteration and transformation of the form so as to survive better in the environment.” The same can be said of change in human beings. The similarity between human change and organizational change prompts the use of a biological metaphor to describe the organizational life cycle. Just as the life cycle of a human being consists of birth, growth, maturity, decline and death, the life cycle of an organization progresses in like fashion.
When a child is born and for some time thereafter, the infant is very susceptible to changes in his or her environment. The infant is vulnerable and requires a great deal of support to grow, thrive and flourish. Similarly, at start-up (i.e. birth), the organization may not be very tolerant of environmental changes, such as changing regulatory requirements, resource non-availability or lagging political support. The organization will be reliant on support from sources such as investors and financial institutions, the local government and the surrounding community.
During the growth and maturity stage, the infant becomes a child, who then becomes an adult. How the child responds to environmental stimuli will determine how well he or she thrives. In like manner, during these stages the organization reacts to various opportunities and threats. How the organization capitalizes on its opportunities while minimizing its threats will ultimately determine how well it thrives within its environment. When the child becomes and adult, he or she will choose a profession and begin earning a living. The adult is at this point making his or her own way in the world. Perhaps he or she will be supporting a family, as well. As the organization matures and gains strength, it is less reliant on the support structures necessary during the start-up stage. The organization will stand on its own and earn a living for its employees and dividends for its shareholders.
As the adult ages, he or she begins to slow down. With old age, the human being faces new challenges. The human body is not as tolerant of environmental changes as it was during the prime of life. The human being undergoes an inevitable, gradual decline that ultimately results in death. As with its human counterpart, the organization in decline faces new threats and is not able to respond with the strength of its “youth”. Also, the failing organization may not have the resources to take advantage of opportunities as they present themselves.
A key difference in the correlation between human and organizational life cycles is that for the human being death is inevitable; for the organization, death may never occur. The declining organization may experience a revival. Just as Chrysler did in the 1980s, the organization may mount a “come-back” and find itself in the position of strength it formerly held. In essence, the organization finds a fountain of youth. Of course, death may not be the end of the story for the human being either. What happens after death may very well relate to the life cycle of the organization, giving more meaning and relevance to the metaphor.









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